The later versions of Vagrant forced some changes in how it managed /etc/hosts which makes ganeti unhappy. These changes properly deal with those changes (even though they are hacky).
This installs a special version of pycurl that is linked against openssl instead of gnutls. The fix was found from here   https://groups.google.com/forum/?fromgroups=#!topic/ganeti/rIFNZVYxLkA
This is a nasty hack until I have a new bugfix release of instance-image. Will remove this after that release is out.
Ran into an issue with stale package caches.